CHARLOTTE, N.C.--(EON: Enhanced Online News)--Babcock & Wilcox Enterprises, Inc. ("B&W") (NYSE: BW) announced today
first quarter 2017 revenues of $391.1 million, a decrease of $13.0
million, or 3.2%, compared to the first quarter of 2016. GAAP earnings
per share in first quarter 2017 were a loss of $0.14 compared to
earnings per share of $0.20 in first quarter 2016. Adjusted earnings per
share were $0.04 for the three months ended March 31, 2017 compared to
adjusted earnings per share of $0.29 in the prior year period. A
reconciliation of non-GAAP results is detailed in Exhibit 1.

“We remain committed to our longer-term strategy of optimizing the Power
business, broadening the Renewable segment's global footprint under an
improved business model, and growing the Industrial segment”

"First quarter results were slightly ahead of our expectations driven by
good gross margin performance in Power and disciplined cost control
throughout the organization," said Mr. E. James Ferland, Chairman and
Chief Executive Officer. "Our Renewable segment project portfolio is
performing within the revised cost and schedule forecast we provided
earlier in the year. Integration of B&W Universal within our Industrial
segment is going well, and we are excited about the cost and revenue
synergies we see ahead of us, as highlighted by B&W SPIG's strong U.S.
bookings this quarter."

"We remain committed to our longer-term strategy of optimizing the Power
business, broadening the Renewable segment's global footprint under an
improved business model, and growing the Industrial segment," continued
Mr. Ferland. "Our transformation into a more diversified engineered
solutions company is on track, and while our focus is on project
execution and integration in the near-term, we look forward to pursuing
additional value-added acquisitions in 2018, focusing on industrial
companies with good technology and synergy potential, thereby driving
value for both our customers and our shareholders."

Results of Operations

Consolidated revenues in first quarter 2017 were $391.1 million, a
decrease of $13.0 million compared to $404.1 million in first quarter
2016, due primarily to the decreased volume in the Power segment, but
mitigated by an increase in revenues in the Industrial and Renewable
segments. The GAAP operating loss in first quarter 2017 was $8.8 million
as compared to operating income of $17.3 million in first quarter 2016.
Adjusted operating income in first quarter 2017 was $3.2 million, a
decrease of $19.6 million compared to adjusted operating income of $22.8
million in first quarter 2016, due mainly to volume in the Power segment
and lower profitability in the Renewable segment.

First quarter 2017 revenues for the Power segment
decreased 32.0% to $196.3 million compared to $288.7 million in the
prior year period. Revenues decreased as a result of lower activity in
retrofits and new build utility and environmental work, which was in
line with expectations. Gross profit in the Power segment in first
quarter 2017 was $43.0 million, compared to $59.5 million in the prior
year period, due to lower volume but partially offset by good execution
and benefits from the proactive restructuring plan introduced in
mid-2016. As a result, gross profit margin was 21.9% in first quarter
2017, compared to 20.6% in first quarter 2016.

Revenues in the Renewable segment were $105.5 million for
the first quarter of 2017, versus $83.8 million in the corresponding
period in 2016, an increase of $21.8 million. Renewable segment gross
profit was $10.6 million in the first quarter of 2017, $2.8 million
lower than the $13.4 million gross profit reported in the prior year
first quarter as higher revenue was offset by lower profitability on
renewable contracts.

The Industrial segment revenue increased 184% to $92.2
million in first quarter 2017 compared to $32.5 million in first quarter
2016, due to the addition of B&W SPIG, which the Company acquired on
July 1, 2016, and Universal Acoustic & Emission Technologies, Inc. (B&W
Universal), which was acquired on January 11, 2017. Gross profit in the
Industrial segment was $15.3 million in first quarter 2017, a $7.6
million increase compared to $7.8 million in the prior year period. Year
over year, gross profit increased due to the contributions of B&W SPIG
and B&W Universal, partially offset by the lower levels of activity in
the balance of the segment.

Universal Acquisition

As previously announced, on January 11, 2017, B&W acquired Universal
Acoustic & Emission Technologies, Inc. for approximately $52.5 million
in cash, net of $4.4 million cash acquired in the business combination.
B&W Universal, which provides custom-engineered acoustic, emission, and
filtration solutions to the natural gas power generation, mid-stream
natural gas pipeline, locomotive and general industrial end-markets, is
a bolt-on acquisition for B&W MEGTEC. B&W Universal is included in the
Industrial segment; it is expected to generate roughly $80 million of
annual revenue and to be earnings accretive in 2017.

Liquidity

The Company’s cash and cash equivalents balance, net of restricted cash,
was $46.3 million at the end of first quarter 2017. The outstanding
balances under revolving credit facilities totaled $102.6 million as of
March 31, 2017 compared to $24.0 million at December 31, 2016. The
increase in borrowings under revolving credit facilities was as
expected, and mainly due to the funding of the Universal acquisition and
costs associated with Renewable segment contracts.

B&W cautions that this release contains forward-looking statements,
including, without limitation, statements relating to our strategic
objectives; management’s expectations regarding the industries in which
we operate; our guidance and forecasts for 2017; our projected tax rate;
our projected operating margin improvements, savings and restructuring
costs; project execution; and growth through acquisitions. These
forward-looking statements are based on management’s current
expectations and involve a number of risks and uncertainties, including,
among other things, our ability to realize anticipated savings and
operational benefits from our restructuring plan; our ability to
successfully integrate B&W SPIG and B&W Universal and realize the
expected synergies from the acquisitions; our ability to realize the
benefits of expected cross-selling opportunities from the B&W SPIG and
B&W Universal acquisitions; our ability to successfully address
productivity and schedule issues in our Renewable segment, including our
efforts to enhance its resources and infrastructure; changes in the
jurisdictional mix of our income and losses; disruptions experienced
with customers and suppliers; the inability to retain key personnel;
adverse changes in the industries in which we operate; delays, changes
or termination of contracts in backlog; the timing and amount of
repurchases of our common stock, if any; and the inability to grow and
diversify through acquisitions. If one or more of these risks or other
risks materialize, actual results may vary materially from those
expressed. For a more complete discussion of these and other risk
factors, see B&W’s filings with the Securities and Exchange Commission,
including our most recent annual report on Form 10-K and subsequent
quarterly reports on Form 10-Q. B&W cautions not to place undue reliance
on these forward-looking statements, which speak only as of the date of
this release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by applicable
law.

About B&W

Headquartered in Charlotte, N.C., Babcock & Wilcox is a global leader
in energy and environmental technologies and services for the power and
industrial markets. B&W companies employ approximately 5,000 people
around the world. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.

(2) B&W is providing non-GAAP information regarding certain of its
historical results and guidance on future earnings per share to
supplement the results provided in accordance with GAAP, and it
should not be considered superior to, or as a substitute for, the
comparable GAAP measures. B&W believes the non-GAAP measures provide
meaningful insight into the Company’s operational performance and
provides these measures to investors to help facilitate comparisons
of operating results with prior periods and to assist them in
understanding B&W’s ongoing operations.

2017 Outlook

Management has provided full year adjusted earnings per diluted share
("adjusted EPS") guidance of $0.75 to $0.95. It is not possible for
management to identify the amount or significance of future adjustments
associated with potential mark to market adjustments to our pension and
other postretirement benefit plan liabilities or other non-routine costs
that we adjust in our presentation of adjusted EPS guidance. These items
are dependent on future events and/or market inputs that are not
reasonably estimable at this time. In addition, the estimated tax rate
can have additional variability from estimate due to changes in
jurisdictional mix and impacts from deferred tax asset valuation
allowances. Accordingly, management is unable to reconcile without
unreasonable effort the Company's forecasted range of adjusted EPS for
the full year included in the 2017 Outlook section of this earnings
release to a comparable GAAP range. However, items excluded from our
adjusted EPS guidance include the historical adjustments noted in the
tables above, and our adjusted EPS guidance also excludes future
estimable adjusting items, including intangible amortization of $0.25 to
$0.26 per share, charges relating to previously announced restructuring
initiatives of $0.13 to $0.17 per share, additional spin costs of
approximately $0.02 per share, additional acquisition and integration
costs of approximately $0.04 to $0.05 per share, and benefits from asset
sales of approximately $0.01.

CHARLOTTE, N.C.--(EON: Enhanced Online News)--Effective July 1, 2017, B&W's Industrial Steam Generation group will transition from the Power segment to the Industrial segment. Leslie Kass has been ... more »